2026-05-17T19:19:56.470Z http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai

ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai:2:8676 2022-02-08T11:26:47Z 2

Strengthening SME competitiveness through financial support, 2021 336.563:334.7 339.13 http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai/record/2/8676 www.international- review.com/en/home M. Hadžić Б. Пауновић SME in Serbia after political changes in 2000 had high growth rate and become an important economic subject, with high share in the national economy. After the Global economic crisis spread to economies in transition, SMEs, as other economic agents, faced with severe problems, especially small and micro companies. With economic recovery from 2015 on and a new wave of economic reforms, SMEs again have positive business demography. Although during the transition SMEs had a high rate of growth and positive business demography, if one look in their qualitative ratios, cannot be satisfied. Namely, SMEs have experienced low level of profitability and competitiveness in comparison to EU average. If wants to explain these findings one has to be aware that low efficiency, namely low gross value added, GVA made no room for savings and investments into development. Generally speaking, including SME sector the share of gross savings and investments into gross domestic product, GDP has for long time been less than one fifth. Thanks to high and increasing foreign direct investments total investments are on the level that made room for increase in rate of growth. However, this rate of growth (2-3% p.y.) although relatively high is modest from the point of view of needs to catch up other transitory economies. When look into external sources of financing for SMEs they are limited and some investigation pointed that the discrepancy between demand for financial sources and supply is more than one billion euros. The difficult access to finance can be explained by biased approach of banks toward large companies, until recently problem of non - performing loans of banking sector, high interest rates and short history of SMEs regarding high requirements of banks. In order to make room for better access to finance several methods are seen as useful. Measures of SME support have to be twofold, qualitative and qualitative one, with higher emphasis on qualitative measures than before. Secondly, it is important to motivate entrepreneurs for saving and increase in investments: by cut in tax on savings, lowering tax rates on company profit, re-composition of tax duties with higher duties for consumption than now. Thirdly, the banco- centric character of financial system has to be overcome by liberalization, making room for micro-credit institutions, support for equity funds development, supporting financial market development, as well. article DOI: 10.5937 52 3-4 151 156 2217-9739 International Review